The Advocacy Update: July 23, 2025
Stay informed without the overwhelm. The Advocacy Update delivers clear, curated legislative updates restoration contractors can trust, highlighting the bills, policies, and issues that matter most to your business. Each week, get a quick, actionable overview to keep you prepared and ahead in a rapidly changing landscape.
Restoration Insurance
California is targeting anti-competitive practices in pricing through algorithmic collusion legislation, and enhancing consumer protection in home improvement loans by extending cancellation rights and mandating clear disclosures, directly affecting how restoration companies interact with insurance claims and consumer financing.
CA SB 295 establishes regulations to prevent collusion among competitors through the use of pricing algorithms. It prohibits businesses from distributing or recommending pricing algorithms that process competitor data under specific conditions, particularly in industries where pricing strategies are crucial, such as retail, real estate, and services.
Another California bill, CA SB 784, aims to enhance consumer protection in home improvement transactions and loans. This legislation requires lenders to obtain oral confirmation of key loan terms and disclose dealer fees, delays repayment obligations until home improvements are approved, and extends cancellation rights for home solicitation contracts from three to five business days (five to seven for senior citizens). It also mandates written contracts with detailed information and prohibits contractors from collecting payments for uncompleted work or undelivered materials.
Impact/Context: The political and geographic context for CA SB 295 is shaped by California's leadership in technology regulation and its concern over anti-competitive practices in digital markets. This bill specifically targets the use of advanced algorithms in pricing, a response to increasing scrutiny over how AI and data analytics might facilitate implicit collusion among businesses, including those in services related to real estate and insurance claims. CA SB 784 reflects California's robust consumer protection framework, which frequently seeks to empower consumers, particularly vulnerable populations like seniors, in high-value transactions like home improvement and associated financing. The extended cancellation periods and enhanced disclosure requirements are legislative responses to past issues where consumers may have felt pressured or lacked sufficient time and information to make informed decisions regarding home repairs and loans.
Restorer's rights
California is enacting legislation to significantly enhance consumer protection in home improvement and home solicitation contracts through expanded cancellation rights, clear disclosure mandates, and down payment limits, thereby shaping the legal and ethical framework for restoration contractors' client interactions.
CA AB 1327 outlines significant amendments to regulations governing home improvement and home solicitation contracts, aiming to enhance consumer protections and ensure transparency. Key changes include specific cancellation rights for buyers (three business days for most, extended periods for senior citizens and emergency repairs) and similar rights for home solicitation contracts. Contractors are required to provide clear notices of cancellation rights in contracts, prominently displayed and in the same language as the sales presentation, along with essential contact and payment information. The bill also imposes monetary limits on down payments for home improvement contracts (capped at $1,000 or 10% of the contract price, whichever is less). Notably, CA SB 784, also under "Restorer's Rights" (and Restoration Insurance), introduces enhanced consumer protection in home improvement loans and transactions, requiring lenders to obtain oral confirmation of loan terms and disclose dealer fees, and extending cancellation periods.
Impact/Context: The political and geographic context for these California bills reflects the state's proactive and often stringent approach to consumer protection, particularly in the home services sector. Both CA AB 1327 and CA SB 784 are legislative responses to concerns about potential predatory practices in home improvement and home solicitation, aiming to empower consumers with clearer rights and greater control over contractual agreements. The emphasis on extended cancellation periods, explicit disclosures, and down payment limits reflects a legislative commitment to preventing financial exploitation and ensuring transparency, particularly crucial in a state with a high volume of home renovation and disaster-related repairs. These measures define the ethical and legal framework for how restoration businesses must engage with homeowners, fostering trust and accountability.
General Contracting
California is enacting legislation to strengthen consumer protection in home improvement contracts by enhancing contractor accountability, mandating detailed disclosures for subcontractors, and clarifying financial responsibilities, which will impact how restoration contractors manage projects and client communications.
CA SB 517 proposes significant amendments to home improvement contract laws, emphasizing the accountability of prime contractors for project completion and holding subcontractors and salespersons subject to administrative discipline for violations. Key provisions mandate enhanced disclosure requirements, including providing names, contact information, and license numbers of subcontractors upon request. Contracts must be written, including essential details like contractor information, bonds, project descriptions, and payment schedules, with specific monetary thresholds for certain provisions. Consumer protection measures are highlighted, advising on joint checks to mitigate mechanics' liens and ensuring understanding of cancellation rights and refund entitlements.
Impact/Context: The political and geographic context for CA SB 517 is deeply tied to California's robust real estate market and its proactive stance on consumer protection. The state has a history of legislative action aimed at safeguarding homeowners in construction and renovation projects, particularly concerning issues like contractor licensing, payment disputes, and potential liens. This bill reflects an ongoing effort to enhance transparency and accountability in home improvement contracts, driven by consumer advocacy and a desire to formalize relationships between homeowners, prime contractors, and subcontractors. The emphasis on clear disclosures, cancellation rights, and financial awareness aims to reduce disputes and protect consumers from unscrupulous practices, which is particularly relevant in the post-disaster repair landscape where homeowners may be vulnerable.
Disaster Response
Federal and state legislative efforts aim to enhance flood insurance transparency and consumer choice, and establish state-level disaster assistance programs, expanding potential opportunities and operational guidelines for restoration services in affected regions. This is being done through a governor-announced special session where flood warning and major water infrastructure legislation are placed at the forefront.
TX HB 108 proposes the creation of a comprehensive guide for civic, volunteer, and community organizations on preparing for and responding to flooding disasters, covering best practices for community engagement, casualty minimization, resource coordination, and long-term recovery plans. US S 2296 outlines initiatives to enhance Department of Defense capabilities across various sectors, including military procurement, advanced manufacturing, and environmental remediation. While broad, this bill specifically addresses disaster response capabilities, alongside environmental cleanup activities and improved efficiency in defense procurement, potentially creating indirect opportunities for specialized restoration and environmental services.
Impact/Context: The geographic context for TX HB 108 is rooted in Texas's vulnerability to severe flooding events, which have historically and currently caused significant damage and disruption across the state. With the death toll of the most recent flood being in the hundreds and the frequency of extreme weather disasters increasing, state officials are now placing Emergency preparation, response, and recovery as the primary legislative goal. The political impetus behind such legislation is to equip local communities with actionable guidance, thereby improving decentralized disaster response and recovery efforts to mitigate economic and social impacts. For US S 2296, the national scope reflects strategic defense priorities that increasingly integrate environmental concerns and disaster readiness into military operations. The inclusion of environmental remediation and disaster response aspects in a defense authorization act signals a recognition at the federal level that these capabilities are critical components of national security, driven by growing awareness of environmental contamination (e.g., PFAS) and the increasing frequency of natural disasters affecting military bases and surrounding communities.
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These weekly updates are part of RIA’s mission to educate, advocate, and elevate the restoration industry—empowering contractors to navigate legislative challenges and shape a stronger future for all.